We use cookies on this website, including web analysis cookies. By using this site, you agree that we may store and access cookies on your device. You have the right to opt out of web analysis at any time. Find out more about our cookie policy and how to opt out of web analysis.

Encouraging women’s labor force participation in transition countries

Government policies can stimulate female labor
force participation if coherent and well thought-out

Elevator pitch

Increasing women’s labor force participation is
important to sustainable economic development, especially in economies with
highly educated women and an aging population. Women’s participation varies
across transition countries, driven by such economic and social factors as
traditional views of gender roles and limited government support for
caregivers. Still, in all countries there is clear scope for policies aimed
at increasing women’s participation. In particular, in countries where
women’s educational attainment is already high, policies to support a better
work−life balance and female entrepreneurship look particularly
promising.

Key findings

Pros

The female labor force in transition
countries is highly educated.

Low fertility rates are making it
easier for women to join the labor force.

Increased female entrepreneurship
can lead to higher female labor force participation directly and
indirectly and in the short and long term.

Cons

Female labor force participation in
transition countries is still impeded by traditional views on
gender roles and occupational segregation by gender.

Limited government support for
caregivers is exacerbating the trade-off between having children
and working.

Population aging is likely to reduce
female labor force participation.

Limited flexibility in the labor
market makes it harder for women to work.

Women wishing to become
entrepreneurs still face substantially larger obstacles than
men.

Author's main message

The share of women in the labor force in many
transition countries is now lower than it was at the beginning of the
transition from central planning to market economies. This problem has
particularly serious repercussions because fertility rates are falling and
populations are aging, further shrinking the labor force. The experience of
transition countries reveals that policies to expand women’s access to
higher education are not enough to ensure higher participation. Also needed
are a broad set of reforms to help women achieve a better work−life balance
and to encourage expansion in working opportunities.